Starting a business is a big step to take. While starting your new business is exciting, it can also be risky. Some of the risks can be prepared for, others are hidden.
Your LEO will take you through a risk management strategy that prepares you for the known risks – such as non-compliance or lack of health and safety – so that you know exactly how to proceed if issues related to these emerge.
Your risk management plan should also address the unknown risks that could potentially arise; teaching you how to respond when an unexpected risk hits. A perfect example of this is Covid-19. This external risk was completely unprecedented.
Once you have decided which risks your business is vulnerable to, you should begin planning how to reduce the potential damage of each risk. If a certain product or service brings with it too much risk, it might be best to expel or recreate that element of your enterprise. Think preventative; remove the risk where possible.
Unfortunately, risk is an inevitable part of entrepreneurship. While its consequences can be damaging, it is important that you do not allow a potential risk factor to sabotage your enterprise. There are always ways to reduce that potential damage and carrying out a solid risk assessment is a very good place to start.
Through the free Start Your Own Business Programme, your LEO will help you to detect and manage the risks associated with your business plan.